New penalties for late and evaded social insurance payments

Katitax · Published September 15, 2026

Starting September 10, 2026, Decree 283/2026/NĐ-CP (issued by the Government on July 15, 2026) on administrative penalties in labor and social insurance took effect. For manufacturers and FDI companies with larger headcounts, this decree matters — because part of the fine schedule scales with the number of employees, not just the amount owed.

1. Late first-time registration for compulsory social insurance

Applies when a business registers late but still within 60 days of the deadline (Article 43.2). The fine scales with the number of affected employees:

2. Evasion of registration (beyond 60 days, or no registration at all)

Past 60 days, a registration gap is reclassified as evasion (Article 44.1) and is heavier at every tier:

3. Late payment of contributions (already registered, paid late)

This is the situation Katitax sees most often during client reviews: registration is in order, but cash flow delays the payment. The fine is 12% to 15% of the overdue amount as at the date the violation record is drawn up, capped at VND 150 million for a company (VND 75 million where the employer is an individual or a household business). If the overdue amount is under VND 400,000, only a warning applies — no monetary fine.

4. Evading payment or paying less than required

The steepest of the four (Article 44.2): 18% to 20% of the evaded amount, capped at VND 150 million for a company (VND 75 million for an individual or household business). Registering a salary base lower than the amount actually paid falls into this category too.

Beyond the fine: the shortfall still has to be paid, plus daily interest

The four fines above are the administrative penalty. In parallel, the business must still pay the full outstanding compulsory social insurance amount, plus 0.03% per day on the overdue or evaded amount. This interest has no cap, so a shortfall left unpaid for several months can end up costing far more than the one-time fine.

For a factory with 100 – 499 employees — a typical industrial-park headcount — a registration gap alone can reach VND 100 million, and VND 120 million if it is classified as evasion. The gap between "paid on time" and "one month late" is no longer trivial — a percentage-based fine, daily interest on top, and a per-head penalty if the issue is a registration gap. This is exactly the kind of risk Katitax reviews every month for clients, ahead of each finalization and audit cycle.

Source: Decree 283/2026/NĐ-CP (Government of Vietnam, issued July 15, 2026, effective September 10, 2026) — Articles 7, 43 and 44. Tier amounts cross-checked against briefings from Crowe Vietnam, LuatVietnam and Dân Trí; the 2× rule for organisations is Article 7.1 of the decree itself.